JEDDAH: Custodian of the Two Holy Mosques King Salman has issued a directive to allocate SR100 billion from Saudi Arabia’s reserves to the Public Investment Fund (PIF).
The move to bolster the Kingdom’s sovereign wealth fund was made after a recommendation from the Council of Economic Affairs and Development, according to state news agency SPA.
It is intended to diversify the investments of the fund and improve the revenues from its portfolio, it was reported.
The fund said it will focus on opportunities in the domestic and international markets, although no timeframes were given.
PIF is expected to focus on “some expected high yields opportunities in the local market that supports the private sector investments and promote economic growth”.
The move to bolster PIF is in line with Saudi Arabia’s ambitious Vision 2030 reform plan, SPA added.
Under economic reforms announced early this year, the government said it aims to expand the PIF, founded in 1971 to finance development projects in the country, from $160 billion to about $2 trillion by transferring assets such as ownership of Saudi Aramco.
In June, the PIF bought a stake in US ride-hailing firm Uber for $3.5 billion.
On Monday, the fund announced plans to buy a major stake in Adeptio, the Gulf-based investment firm which controls Kuwait Food Co. (Americana).